Question

An appraiser in analyzing the data for his final estimate of value on a property would give least consideration to:

Selections

• A. The assessed value of the property

• B. The value of the land

• C. Comparisons of other properties

• D. Its highest and best use

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Answer: A

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5 Keys Summary

• Assessed value is derived by a valuation officer specifically for tax purposes.

• The assessed value of a property is explicitly not equal to its market price.

• An appraiser’s goal is to determine the true final estimate of value using established valuation methods.

• Because assessed value is valuation for taxation, it cannot be used by the appraiser to determine the market value of the house.

• In contrast, analyzing comparisons of other properties (the sales-comparison approach) is one of the three methods appraisers use to select and apply value estimates.

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